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Skill Acquisition and Firm Creation in Transition Economies
Author:
Wenli Li null

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Ms. Zuzana Brixiova
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Tarik Yousef null

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Series:
IMF Working Papers
Volume/Issue:
Volume 1999: Issue 130
Language:
English
Publication Date:
01 Sep 1999
DOI:
https://doi.org/10.5089/9781451855173.001
ISBN:
9781451855173
ISSN:
1018-5941
Pages:
31
Keywords:
WP; private sector; Skill acquisition; firm creation; transition; government policy; business opportunity; transition economy; government budget constraint; unskilled worker; entrepreneur hire; Self-employment; Public sector; Labor force; Human capital; Central and Eastern Europe; Baltics; Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The transition from plan to market has hinged on the development of a dynamic private sector that would serve as the engine of growth and employment creation. This paper examines the link between the availability of skilled workers and the creation of new private firms. Using a dynamic search model, it shows how the lack of skilled workers inhibits entrepreneurship and depresses the rate of firm creation, slowing the recovery of aggregate output and labor productivity during the transition. The paper also shows how policies designed to encourage skill acquisition by workers have a positive impact on the economy.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund